Akademik Məlumat İdarəetmə Sistemi
37th International Scientific Conference on Economic and Social Development - Socio Economic Problems of Sustainable Development, Baku, Azerbaijan, 14 - 15 February 2019, pp.385-390
The article deals with the Azerbaijan Republic' potential of developing with the support of financial intermediary institutions. There are many ordinary steps for realization of this goal. The aim is to analyze the mechanisms of stimulating creation of ordinary financial intermediaries and supplement public finance with private capital. Every country' sustainable development requires resting on long history proven basics free entrepreneurship, banking industry, commodity and stock exchanges. Capital scarce emerging market countries need more market-oriented institutions for converting people' income into investment through saving. Low level of share of market capitalization in GDP, high share of prime working and mature working age population display potential of unused savings of people. Stock market, mutual funds, pension funds, mortgage associations may attract free disposable money into financial circle and resolve multi purpose targets. The economy will get money resources requiring effective use, the people will have current and future rewards as dividends and growth in pensions. Development of financial institutions will contribute for restructuring of the economy into efficiently functioning mechanism and attract foreign direct and portfolio investments. The bank credit possibilities for economic development has exhausted itself This explains the necessity of forming these institutions for future sustainable development at after-oil period of Azerbaijan. The creation of discussed mechanisms in the article in short period requires regulation and stimulation by strong tax and finance incentives. The coordinated strategy to improve and consolidate the work of legislative and executive power in Azerbaijan in the direction of creation and development of market-oriented financial intermediary institutions may change Azerbaijan' oil-dominated economy into a developed market economy.